TSMC Sees 59% Profit Surge
TSMC, the world's largest manufacturer of advanced AI chips, will likely report a 59% surge in net profit to T$632.6 billion ($19.65 billion) for the second quarter, according to an LSEG SmartEstimate compiled from 18…
Source: AOL · July 21, 2026 at 6:53 PM · AI-assisted report
Corroborated
KUALA LUMPUR, 22 JULY 2026 —
TSMC, the world's largest manufacturer of advanced AI chips, will likely report a 59% surge in net profit to T$632.6 billion ($19.65 billion) for the second quarter, according to an LSEG SmartEstimate compiled from 18 analysts.
Market Impact
The company's strong performance is driven by booming AI infrastructure spending, with demand for its 3-nanometre and 2-nanometre process technologies for AI chips, as well as its advanced chip packaging technology, CoWoS, remaining strong, analysts say.
TSMC's market capitalisation is now nearly double that of South Korean rival Samsung Electronics at around $1.97 trillion, with its Taipei-listed shares gaining 56% so far this year, slightly higher than the 54% rise for the broader market, according to Reuters.
Dan Nystedt, research analyst at TriOrient, said TSMC's strong second-quarter revenue shows AI demand remains healthy, driving demand for its advanced chip production and CoWoS packaging, as the company posted a 36% year-on-year rise in second-quarter revenue, ahead of market forecasts and a new record high.
Haas Liu, Bank of America's Asia semiconductor analyst, expects TSMC to raise its full-year revenue growth outlook, with supply chain checks suggesting the AI demand pipeline remains strong, and the company could raise the full-year outlook from its current guidance of "above 30%" year-on-year, according to a research note.
TSMC's capital spending outlook will also be a key focus for investors, with the company investing $165 billion to build chip factories in the U.S. state of Arizona, and some analysts expecting it to raise capital spending to about $58 billion, citing tight equipment supply and aggressive capacity expansion by memory makers, including Samsung Electronics, Micron Technology, and SK Hynix.
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